Many first-time parents are shocked when they realize how much having a baby can cost. And I am not just talking about doctor bills. It's all little things, such as diapers, clothes, formula, baby food, and toys, that add up to cost big bucks!

When my wife and I had our first child, we learned a lot about what we really needed and what was a waste of money. So now that we are seasoned veterans and expecting our second baby, we feel confident that we can avoid same wasteful mistakes we made first time around.

Here is a list of 6 things that your baby can live without, followed by 4 things that we could not have lived without:

Baby Wipe Warmer - An unnecessary waste. My daughter never fussed when we used baby wipes that were room temperature. Baby wipe warmers are just an attempt to get parents to spend more money on something they really do not need.

Expensive Clothes - You are going to find that your little one will grow out of his or her clothes incredibly fast. It's one thing to spend a little extra for a nice dress or outfit for a holiday or special occasion. But it doesn't make sense to spend a fortune on clothes that will be worn only once or twice. Instead, choose lower priced items (as long as quality is satisfactory), especially for little onesies and sleepers.

Another tip: don't remove tags from baby’s clothes until they are ready to be worn. We have outfits that my daughter grew out of before she even had a chance to wear them. Since we had already removed tags we were not able to exchange them for a bigger size.

Brand Name Goods - Using generic items instead of brand names can save you hundreds of dollars per month. We used brand name baby formulas for first few months and then switched to generic brand after we realized it cost 60% less. Not only did our little girl not mind change, she actually seemed to prefer it. The generic brand seemed to give her less gas.

Toddler Foods - When our baby was first learning to eat solid foods, we tried dozens of different flavors of baby food. We thought it was important for her to adjust to new foods and to try a variety of flavors.

But as soon as she got used to new texture, we started making our own baby food. Carrots and sweet potatoes worked especially well when mixed in food processor.

And we never even bothered with 'toddler foods'. They are an expensive waste. Look on supermarket shelf and you will see jars of diced fruits and vegetables 'just for baby'. But you know what? You can cut up a pear or a green bean yourself. It will save you money and you will know that food is fresh.

Large and Expensive Toys - When my daughter was born we spent several hundred dollars on toys for her to play with, plus we received many more as gifts. We got her all sorts of giant stuffed animals and high tech toys that danced or played music.